Is the new depreciation calculation actually active?
The system switches to the new depreciation calculation only after you activate the SAP ECC Extension Financials (EA-FIN). If the add-on is not active, the system uses the old depreciation calculation.
User can use transaction SFW5 for verifying if the extension EA-FIN is active. For simply checking, user needs to call transaction AW01 and choose 'Display dep. calculation' for navigating to the fixed asset trace. A different screen appears, all depending on the depreciation calculation. This is the new depreciation calculation, in case the period interval procedure has been listed in the header line.
Are there any issues with the new depreciation calculation?
To begin with, the calculated depreciation amounts are first compared with one another. For obtaining the depreciation values with the "old" depreciation calculation, user can utilize the transaction.AW01_AFAR (Asset Explorer - old depreciation calculation). Even if the new one is active, this transaction will at all times use the old depreciation calculation.
Procedure:
For the affected fixed asset, call transaction AW01 (Asset Explorer).
Incase, the system generates a dialog box advising the user that the values of the fixed asset have been modified, the depreciation for this fixed asset is not current. This may be due to a change process which was not properly closed. In this scenario, the change process needs to be analyzed. However, if the fixed asset was not altered and the fixed asset already pre-existed before the changeover to the new depreciation calculation, then it is due to a rounding difference which was caused primarily by the transformed mode of operation of the new depreciation calculation.
For the affected fixed asset, call transaction AW01_AFAR (Asset Explorer - old depreciation calculation) in a separate session.
Incase, the system displays a dialog box advising the user that values of the fixed asset have been modified, the old depreciation calculation reaches at a different result. User can calculate alternative values by selecting "Recalculate dep".
Now user will be able to compare the values of the two depreciation calculations with one another. Incase, the variance is less than one integral currency unit, then there is generally a rounding difference because of the changed calculation procedure. For bigger differences, the reason can be determined by utilizing the fixed assets trace (Display dep.calculation).
Differences in the logic; differences that are usual
Calculation procedure,
The calculation procedure was transformed from a transaction-oriented to period-interval-oriented. The period-based depreciation calculation substitutes the previous depreciation calculation which was based on the individual transactions. The "old" depreciation calculation consecutively calculates each of the transactions discretely and in the sequence in which a line item was posted to a fixed asset. However, the "new" calculation groups all of these together and then all of these transactions are cumulated and the value changes which are included in a time period (calculation period) and then calculated as a time segment. The system puts all the transactions in a group of a fixed asset as per the calculation periods.
The system utilizes the asset value date along with the period control group of the transaction type group for determining the period of calculation. The system then assigns each transaction to a calculation period. Based on these intervals, the system creates period intervals from the determined calculation periods and calculates the depreciation.
Rounding differences
Rounding differences between the two calculation methods may naturally take place because of the conversion of the calculation procedure (see point 4a). Incase, the size of the variance of the calculation results between the old and the new depreciation calculation is essential currency unit or lower, this generally is because of the rounding difference.
If the user rounds to entire currency units and has posted several transactions to the fixed asset, for which the amounts have been briefed in the new depreciation calculation in a calculation period, the differences may range more than one currency unit. In this scenario, the old depreciation calculation is generally rounded after every transaction. On the other hand, the new depreciation calculation, calculates an amount which is rounded only once.
During a fiscal year, managing the time-dependent depreciation terms or the option of making changes.
Amendments to the depreciation terms have always been associated to all the open fiscal years, along with the old depreciation calculation. During the fiscal year, with the new depreciation calculation, user now has the option for altering the depreciation terms. This now refers to the fact that the changed parameters are encompassed in the calculation always from the period which the period is also valid. The "old" depreciation calculation does not support this. The AW01_AFAR functions for time-dependent depreciation terms work only with the parameters of the last valid (newest) interval.
The listed below depreciation terms can be maintained time-dependently on the fixed asset:
- Useful life
- Depreciation key
- Variable depreciation portion
- Scrap value/scrap value percentage rate
No depreciations on transactions,
The period-based calculation procedure cumulates all the transactions which are included in a specific time and controls the depreciation on all of these cumulative values.
On individual transactions, it’s not possible to retrospectively regulate a redistribution of the calculation results. Hence, if the user now utilizes the new depreciation calculation, the system will no longer save the depreciations on transactions in the line items. The only exceptions to this rule would be - in the case of retirements or retirement transfers, proportional value adjustments as these must be calculated at single transaction level.
Extended period controls
Thanks to the new depreciation calculation, user will now be able to define the following additional period control in the depreciation key for the previous period controls which can be assigned to a phase of a depreciation key:
- Period control which is used for write-ups
- Period control which is utilized for investment support
- Period control which can be utilized for revaluations
- Period control which is utilized for unplanned depreciations
The old depreciation calculation will going forward not interpret any of these new period controls for such transactions, however it will utilize other period controls (as it did in the past) based on the specified criteria.